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From the Opalesque team: Yield Curve Opportunity Fund continued to deliver returns not correlated to the stock or bond markets, and uncorrelated with all hedge fund styles and strategies. The Fund gained 0.66% during September 2008. The strategy is up 17.27% YTD through the end of September. Since inception in July 2005, the strategy has gained 175.98% with only one losing month, compared to the S&P 500 which was down 2.10% and the Lehman Aggregate Bond Index which gained 12.21%.

The manager reported, in the investor report received by Opalesque, that September had brought the most volatile market conditions of his trading career. His team has maintained high risk control and have had to adapt to conditions previously unseen in the history of U.S. credit markets.

He said: "We continue to look forward to a return to periods of lower, if not low, volatility that will allow us to expand both our risk and reward so that we can meet our goals. But we are not going to walk into a hurricane with an umbrella in the vain hope that we can get juicier returns by taking more risk without regard to market conditions. We will let the markets tell us when volatility has calmed and we can adopt a more aggressive posture."

The Yield Curve Opportunity Fund seeks to generate high absolute total returns by taking advantage of discrepancies occurring along the U.S. Treasury yield curve. It was sponsored by Magnum in May this year (......................

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